© Reuters.
PITTSBURGH – Wesco International, Inc. (NYSE: NYSE:) has announced the pricing of a private offering of senior notes by its subsidiary, WESCO Distribution, Inc. The offering includes $900 million of 6.375% senior notes due in 2029 and $850 million of 6.625% senior notes due in 2032. The company has upsized the offering from the initially announced total of $1.5 billion to approximately $1.75 billion.
The offering, slated to close on March 7, 2024, subject to customary conditions, has been met with increased investor interest, prompting the raise in the aggregate principal amount. The notes will be unsecured and unsubordinated, ranking equally with other such obligations of Wesco Distribution. They will also be guaranteed by Wesco International and its wholly owned subsidiary, Anixter Inc.
Wesco Distribution expects to net approximately $1.728.4 million from the offering, after discounts and expenses. The company plans to use these funds primarily to redeem all of its outstanding 7.125% senior notes due in 2025, with the redemption expected to occur on or after June 15, 2024. In the interim, the proceeds will temporarily repay portions of Wesco Distribution’s accounts receivable securitization facility and its asset-based revolving credit facility. These facilities will then be redrawn to fund the redemption of the 2025 notes.
The notes and their guarantees will be offered to qualified institutional buyers and non-U.S. persons outside the United States. They have not been registered under the Securities Act of 1933 and will not be publicly available in the United States.
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